Engagement Summary
In late 2019, Monticello Consulting Group partnered with the collateral unit at a leading global bank on the operational readiness portion of their OTC bilateral client migration project. The engagement aimed to address the key issues around achieving operational readiness for a global technology transformation. Monticello had multiple responsibilities on this project including: 1) provide program and project management on multiple workstreams, including creation and coordination of end-to-end testing 2) rewrite global procedures, and 3) develop and implement a new cross-region training platform. Through sound planning, testing, and training, Monticello ensured that users across the globe were operationally ready for the transition to their new global platform.
Case Study Detail
PROJECT BACKGROUND
In early 2019, a leading bank planned to transform the technology used by their global OTC Collateral Operations unit. The plan was to migrate all core collateral functionalities that supported the OTC client population from the legacy platform onto a new proprietary system. The existing proprietary platform had become outdated and needed replacement by a solution capable of supporting growth and the ever-changing regulatory environment.
To prepare a global team across multiple regions and time zones, the client needed to set up an end-to-end testing plan that would ensure all scenarios are covered, regardless of geography. To stay compliant with internal Operational Risk and Control standards, all procedures needed to be updated to reflect the detailed workflows in the target state. Making sure that the procedures are applicable on a global level, without unique regional procedures, was a priority. To distribute the knowledge of the new system, a training program needed to be developed and rolled out globally to more than one hundred users.
ENGAGEMENT OBJECTIVES
E2E Testing:
The end-to-end testing plan validated scenarios from margin call calculation though issuance, settlement, and next day.
All relevant scenarios were documented, accounting for exception handling, and test scripts written
Testing included regression testing of legacy platform
Day over day testing to validate call and pledge status and that balances are accurate from EOD to SOD
Procedures Documentation:
Created procedures documentation for hundreds of new processes being completed out of the target system.
Reduced volume of OTC Collateral procedures and eliminated regional procedures
Followed firmwide procedures guidelines implemented by internal Operational Risk and Control team
Centralized documentation and made available to all users to be used as a resource and training supplement
Training Platform & Plan:
Developed new training process to ensure a smooth transition from legacy workflow applications to the target workflow.
Goal - to get users comfortable with the new system before go-live dates and to minimize the learning curve
Video software simulations were created to walk a user through various parts of the margin call workflow
Plan included live training sessions, self-guided sessions, as well as an attestation of competency
BUSINESS VALUE
Monticello Consulting Group’s Change Management team partnered with the client’s operations experts and development resources to build a well thought out plan to ensure operational readiness for an exceptionally large technology transformation. Monticello’s Change Management expertise helped all stakeholders understand and implement the complex business requirements that encompassed the entire OTC margin workflow including call issuance, pledge booking, approvals, settlements, and internal and client reporting. End-to-end testing ensured that all workflow issues were identified prior to go-live. By creating updated global procedures and a comprehensive training plan, the users across the globe were ready for the change to a new target workflow and Monticello’s client achieved operational readiness for the transition to their new global platform.
